E-rickshaws and autorickshaws drivers - whotraditionally ferry people - have now shifted to moving goods for e-commerce companies and kirana shops to residents in smaller cities during the Covid-19 crisis.

This has helped them with a new stream of business, at a time when people were avoiding public transport for fear of contracting coronavirus.

“This last-mile goods delivery business reflects behavioural change in smaller cities like Sitapur, Shahjahanpur, Sultanpur, Saharanpur,” according to Sameer Aggarwal, Founder and CEO, RevFin, a company that lends money for the unorganised sector, comprising drivers.

Rise in income

Incomes of such drivers have now bounced back to 50-70 per cent of pre-lockdown levels, RevFin told BusinessLine .

Despite income levels not returning to normalcy, Aggarwal said the drivers paid back whatever they could during Covid-19.

Last month, some drivers paid back more than their EMI, settling past dues, in what reflects disciplined financial behaviour, said Aggarwal, whose company gives loan after a psychometric analysis that it developed with IIT-Kharagpur. Most of RevFin’s customers are in Uttar Pradesh, Bihar, Rajasthan, West Bengal and Delhi.

Last-mile goods delivery business trend was seen in larger cities as well, prompting the growth of electric two-wheelers that carry smaller packets and lighter goods including food, pointed out Irfan Khan, Founder CEO, eBikeGo, an electric two-wheeler maker and services company, that saw 21.48 lakh deliveries inApril-December 2020, double the deliveries in the same time last year.

eBikeGo has tied up with JioMart, Myntra, Bigbasket, Swiggy, Zomato, Amazon and Flipkart for such deliveries.

Most of RevFin’s customers showed financially prudent behaviour during the hard times.

“When the 21-day lockdown was first announced, we offered ₹2,100 interest-free loan to all our customers. Only 15 out of 1,000 took the loan, indicating they had buffer income. Subsequently, only three out of 1,000 customers said they would like to return their vehicles or not continue with the profession. And in December 2020, we got highest ever monthly repayment, as some customers repaid their EMIs and past dues,” said Aggarwal.

“Earlier, some e-commerce companies delivered only to shops in smaller cities. Now, the companies, as well as kirana shops, are sending products home. This new type of demand is driving up sales,” said Aggarwal, who has seen its business resume to 50 per cent levels of last year.

In April-August, RevFin did not receive any repayments. August onwards it got 25 per cent repayment and in October-December, it received 95 per cent repayments.

Going digital

In several towns, RevFin receives EMI in cash though it incentivises digital payment, as the drivers are paid the fare by their customers in coins of ₹5 or ₹10. Now, RevFin has tied up with FINO Payments Bank and Airtel Payments Bank.

RevFin looks to tap newer areas like the EV 2-wheeler segment, and tie up with EV makers and aggregators.

“These are delivery staff of aggregators, coffee shops, who have never taken a loan. In an experiment, we found that their repayment behaviour is exceptionally good. Some have seen their parents exposed to private, high-cost money lenders at 3 per cent a month,” said Aggarwal, whose company will look at raising funds in near future.

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